Edelweiss AMC adds four-wheelers, mass consumption to portfolio post GST cut

Trideep Bhattacharya, Chief Investment Officer – Equities at Edelweiss AMC, said the firm remains overweight on autos, consumption, and select government capex-driven sectors, while staying underweight on commodities.On autos, he explained, “We’ve been overweight auto original equipment manufacturers (OEMs), to be precise, particularly in two wheelers. Of late, given that the four wheelers are coming off a lower base after having underperformed for a good while, we’ve added to four wheelers as well.” Bhattacharya added that domestic-focused ancillaries and OEMs are preferred, while global-focused ancillaries remain underweight.

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On consumption, he said the firm has been overweight in luxury and rural segments for a while and recently added to mass consumption after the goods and services tax (GST) announcements. “If you put that in context, then various aspects of consumption, last ticket and small ticket, we are clearly overweight,” he said.
Bhattacharya also highlighted three other areas of focus: government capex with emphasis on defence, railways and power, rate cut beneficiaries such as non-banking financial companies (NBFCs), and financials at reasonable valuations. These are funded by underweights in commodities like oil and gas, and metals and mining.Also Read | City Union Bank eyes credit pickup as GST cuts benefit 50% of its loan book

Bhattacharya expects the July-September 2025 quarter of the fiscal year 2025-26 (FY25) earnings to remain subdued but sees momentum building from the October-December 2025 quarter (Q3). “Q3 onwards, we will see a pickup in growth rates meaningfully come through,” he said, adding that the upcoming earnings season will be “fairly critical” in signalling whether India transitions from downgrades to upgrades.

For the full interview, watch the accompanying video

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